Collaborate or Die
Is Your Supply Assurance Strategy Sound Enough to Cope With Volatility?
The high innovation rate in the electronics industry and the strong centralization of production facilities in Asia, creates various challenges for electronics OEM and their suppliers.
Volatile customer demand on the one hand and increased cost/margin pressures on the other, lead to instability across the entire electronics supply chain. Swings in demand amplify the focus on having the right stock at hands at the right time. Recent natural desasters have put even the strongest and most flexible supply chains through a test.
The new situation requires a fundamental shift of managing across the global supply chain, to secure the success: Collaborate or Die!! The new mantra of collaboration needs to focus not only on managing the entire value chain to be most flexible, but specifically requires to put sustainability thinking at the core of the thought process.
While communication was always important in this industry, the need to collaborate across the extended enterprise of suppliers, partners, own facilities and customers is a must have going forward. Only a few companies in the industry have yet developed an understanding on how do this properly, with a clear understanding of what flexibility actually means for them and being able to secure scarce supply in times of crisis.
Every chain is only as strong as its weakest link. it is high time for all players in the electronics industry to commit to collaboration, transparency and creating shared value.
Faster response capabilities and higher visibility enhance operational flexibility in the electronics industry!